market snapshot preopen 10/09
OJ had a downside breakout Friday with the slide open for quite a ways. The following chart shows support levels that could be challenged if the selling pressure continues. (Charts from ProphetX).
There has been some noise in the cattle markets. Looking at the intermediate term and shorter term trends reveals that the shorter term may have renewal power.
The grains were stronger (again) in overnight trade with corn up nearly 4c and beans up 1c. Strength in the coming week in either or both of these markets could be indicative of a surge of buying that could drive prices significantly higher. I have a bias that beans have a much higher potential for sliding than corn. Of course wheat is leading the grain complex and strength there has been staggering. If corn were to slide, then a likely target would be 252. If beans slide, the target may well be 537 basis NOV. Judging from the strength of the overnight session, there is at least a chance that the tone set on Monday could be one indicative of further strength. If weakness occurs (DEC corn below 270, beans below 560) then the slide could come to pass.
Sit back and watch.
posted by jared @ 5:04 AM
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